A multi-million pound scheme to redevelop Bishop’s Castle Community Hospital was in serious danger of being scrapped today after the project’s key player warned it would withdraw because of continued delays.Coverage Care is looking to redevelop the Stone House site along with the Shropshire County Primary Care Trust and Shropshire County Council.

But it claims that after more than a year of delay and uncertainty regarding the plans, it has been forced to review its position and will consider withdrawing its £8.5 million investment proposal.

David Coull, Coverage Care chief executive, said that despite resolving a £700,000 impairment charge – which had earlier threatened the project – a number of “complex service and contractual items” remained unresolved.

In January, the primary care trust board announced the charge – an accountancy rule peculiar to the NHS – would be written off.

This, according to Coverage Care, gave hope that a satisfactory agreement could be concluded.

However at its board meeting last month, the trust indicated that a number of additional challenges had been identified but failed to present a written progress report.

This has now led Coverage Care to write to both the trust and county council to express its concern at the delays.

Mr Coull said: “We regret the continuing delays and the failure to reach a satisfactory resolution to the outstanding items and unfortunately with these particularly complex issues remaining unresolved, it makes it difficult to see how the project can proceed.

“We remain committed to Bishop’s Castle and are available should circumstances change but at the moment are left with few options and now may well have to pursue alternative investment opportunities.”

No-one was available for comment from the primary care trust. But Bishop’s Castle Mayor, Councillor Jane Carroll, said the Coverage Care warning was “not exactly surprising”.

She said: “The decision on the hospital was supposed to be made by Christmas but it has been continually delayed. It is very disappointing. We hope they don’t withdraw.”

By Dave Morris